Stellantis and Ferrari Face Governance Crossroads Amid Elkann Tax Settlement

The Elkann family's July 2025 settlement of their inheritance tax dispute with Italian authorities resolves an immediate legal hurdle but leaves unresolved risks lurking beneath the surface of two of Europe's most iconic automotive firms: Stellantis and Ferrari. While the €175 million payout to the Italian Revenue Agency marks a milestone, the broader legal and familial conflict—rooted in contested residency claims and a generational estate feud—exposes vulnerabilities in governance structures that could undermine shareholder value. For investors, the case raises urgent questions about the stability of leadership at Exor NV, the Agnelli family holding company that controls both brands, and the potential ripple effects of ongoing legal battles on corporate strategy and reputation.

Governance Risks: A Fractured Leadership Structure

At the heart of the dispute is Exor NV, the family-controlled entity that owns 30% of Stellantis and 25% of Ferrari. The Elkann siblings' legal conflict with their mother Margherita over the Gianni Agnelli estate has divided the Agnelli dynasty, creating a leadership environment fraught with personal and financial tensions. While John Elkann, chairman of both Stellantis and Ferrari, has maintained his roles, the ongoing feud could distract from strategic priorities.

The unresolved seizure of €75 million in assets from Elkann and his associates—including key advisors—by Turin prosecutors underscores the fragility of Exor's governance. Legal battles often divert managerial focus, and Stellantis' recent struggles—declining revenues, brand dilution, and a lagging EV transition—suggest that governance distractions may be exacerbating operational weaknesses. reveals a stark divergence: Stellantis shares have underperformed amid governance and execution concerns, while Ferrari's premium positioning has insulated it—so far.

Legal and Financial Threats: Asset Seizures and Strategic Constraints

While the tax settlement avoids admitting wrongdoing, the unresolved criminal investigation in Turin poses a direct financial risk. If prosecutors pursue charges, asset seizures could expand, potentially destabilizing Exor's liquidity and its ability to influence strategic decisions at its portfolio companies. Stellantis, already grappling with a €2.1 billion annualized operating loss in early 2025, lacks the financial resilience to absorb further penalties. Meanwhile, Ferrari's stronger cash flow offers some buffer, but its brand equity remains tied to the Elkann family's reputation.

The tax case also raises questions about Exor's corporate governance transparency. The family's opaque estate planning—including the role of Swiss notaries and accountants in structuring Caracciolo's inheritance—has fueled perceptions of opacity. Shareholders may demand greater oversight, but Exor's dual-class shares, which concentrate voting power in the Agnelli family, limit accountability mechanisms.

Reputational Damage: Elkann's Credibility and Market Trust

John Elkann's dual role as chairman of both Stellantis and Ferrari places his personal reputation at the center of the dispute. Prosecutors' allegations of a “criminal plan” to evade taxes, even if unproven, risk tarnishing his leadership image. Investors in Stellantis, already skeptical of its turnaround plans, may question whether Elkann's focus remains on operational turnaround or legal survival. Ferrari, while less directly tied to Stellantis' woes, could suffer collateral damage if the family's legal woes spill into the public eye, eroding the brand's aspirational mystique.

Investment Implications: Proceed with Caution

For investors, the Elkann tax dispute serves as a wake-up call to reassess exposure to Stellantis and Ferrari until regulatory clarity emerges. Key risks include:

1. Stellantis: Its weak financials, governance distractions, and reliance on Elkann's leadership make it particularly vulnerable. A prolonged legal battle could delay critical decisions on cost-cutting or EV investments, further widening the gap with peers like Renault or BYD.
2. Ferrari: While its standalone performance remains robust, its ties to Exor mean it cannot be entirely decoupled from familial governance risks. Shareholders may demand clearer separation of Ferrari's governance from Exor's legal liabilities.

illustrates its lag in transitioning to electrification—a strategic misstep that governance distractions may compound.

Conclusion: Governance Gaps Demand Investor Vigilance

The Elkann settlement resolves one chapter of a protracted saga but leaves systemic risks intact. Until the Turin investigation concludes and Exor strengthens governance transparency, investors should treat Stellantis with caution and maintain a watchful eye on Ferrari's independence. In an era where ESG and governance standards increasingly drive valuation, the Agnelli dynasty's opaque legacy—now tested by legal scrutiny—could prove a costly liability. Until clarity arrives, hedging exposure or prioritizing competitors with clearer governance pathways may be prudent.